Providing Efficient Banking Services in a Fragile Environment: Structure, Performance and Perspectives of the Banking Sector in Guinea-Bissau
Jul 31, 2014 | Y. Arvanitis | AfDB
This paper addresses the underdeveloped Bissau-Guinean banking sector and the economy’s inability to fully harvest the growth benefits of a more efficient financial intermediation sector. Acknowledging that the financial sector’s vulnerabilities are very much driven by the fragile political and economic environment, the paper offers key policy recommendations in order to improve the status quo. In this regard, more robust policies, regulations and procedures should be implemented in order to strengthen the financial sector, and promote financial deepening. Furthermore, political stability, economic formalization of firms and diversification away from the cashew sector as well as stricter enforcement of the rule of law are also needed.